Ichimoku cloud - How to trade momentum stocks?

Ichimoku cloud is a classical indicator within technical analysis that incorporates multiple methods and forms a very strong basis to identify the trend, momentum, reversals and much more.

I always believe in understanding the formulas and how any indicator functions and not just the application. This helps in developing conviction towards the trade setup using that specific indicator. If used aptly this indicator can also help in identifying the Elliott wave counts. Yes, I use any and every indicator in improving my Elliott wave, Neo wave counts and probable scenarios.

Now see below how this indicator can help in identifying the momentum

Titan 30 mins chart:

There are different ways to use Ichimoku indicator. I will not dwell right now into the construction of all the parameters but what is important is to see is the blue line (Tenkan – sen, also known as conversion line) and red line (Kijun – sen, also known as base line). If both of these lines are moving below the Ichimoku cloud and also prices are below both of these lines we have our first setup ready.

Now the key is to identify the area of maximum momentum with good trade setup. Over here one can see that whenever prices are retesting the blue line and breaking below the low there is a good sell opportunity provided the blue and the red lines are not too far away. These lines will converge and diverge. The entry opportunity is when they are converging and prices are retesting the blue lines. That is where the setup is complete and to pull the trigger we need to see break below the prior lows.

This is simple but very effective method in order to capture the momentum on any given stock, commodity or currency. As mentioned earlier there are multiple ways in which we can apply these methods and by combining with Elliott wave it provides excellent opportunity.

Based on above methods we have generated calls for Intraday stocks advisory and it has managed to work extremely well. However, there can be exceptions when the stock deviates from expectations and using a stoploss is extremely important.

Get access to Intraday calls on Nifty, Bank Nifty, stocks, commodity, currency services that are based on systematic methods combined with various technical indicators together with complete follow-up. Subscribe here

Momentum stocks research report – is now published which gives the stock that has potential to give approximately 10% to 12% returns with a clear stop, partial profit, target levels explained on the chart with detailed Elliott wave counts. This will help in learning objective application of wave theory and the level where the counts become invalid is the stop level but strong potential to outperform in current market. Get access here

Will Nifty collapse like DJIA, Crude and Nifty?

Nifty had been moving precisely as expected and this time as well we are spot on in identifying the turn and cautioning near 11000 mark. The Global market selloff had been strong with DJIA (US) crashing, followed by Crude crashing, now spreading across to Nikkei 225 (Japan). This looks to be a repeat of 2008 where there was nowhere else to run for cover. Few months back when crypto currency were the darling among traders we warned that a crash in this asset class will be a warning sign that money has started moving out of riskier assets. This was clearly stated in our monthly research report. The entire global phenomenon has been playing out exactly like that and now the weakness has been spreading across. DJIA has shown one of the biggest losing streaks in years with heavy volumes when many are still trying to unearth the news revolving around the selloff. I wish markets worked on news or events making money would have been much easier. But freely traded markets follow patterns that are predictable in the form of Elliott wave and Time cycles. This has helped us to capture the swings each time precisely at the tops and lows. This time as well markets have continued to correct when we warned strongly near 10900 – 10970 mark.

In case you missed my webinar just before the crash on 21^st December 2018 – See it here

Now look at the below charts of Nifty published on 7^th December 2018 in the daily equity research report

Nifty daily chart– Anticipated on 7^th December 2018

Happened: as on 24^th December 2018

 

Anticipated on 7^th December 2018 in “The Financial Waves Monthly update”

“Nifty can move as per the path shown in figure 4. Prices are now in short term downtrend and break above the resistance of 10740 levels might result into retest of recent high near 10940 or higher in the zone of 11000. This is not necessary and it is best to look for shorting opportunity as we approach near the resistance levels. However, next few days of price action is very crucial. In case of sharp decline below …… the bigger degree correction will resume below ……….

One should be prepared for increase in volatility with state election outcome due over next few days as markets are already in corrective phase which is normally associated with high volatility.” BANG ON!

Happened: Nifty moved precisely as expected and showed a pullback post 7^th December. Despite BJP losing the state election and RBI governor resigning suddenly markets closed positive that day just to move as per the path shown in monthly report. Nifty touched intraday high of 10985 on 19^th December 2018 and then reversed back sharply lower. Again precisely as per the path shown. So, think if events drive the prices then how can markets follow the path shown so precisely and accurately.

It is the Elliott wave patterns that help us to forecast the trend along with Time cycles. In our morning research report – The Financial Waves short term update we cautioned exactly at 10900 – 10970 zone and break below 10880 followed by 10820 strongly confirmed the reversal. Nifty touched intraday low near 10534 in today’s session which is already a move of around 300 to 350 points post the break of support. For building fresh shorts it is better to wait for pullback and existing shorts are riding the trend with well in the money trades.

We are in alignment with majority of indicators and Time cycles. It is not very often to get such high predictable trade setups. You can know the next big trend for Nifty in the daily and monthly research report.

Get access now to the daily equity report – The Financial Waves short term update on an annual basis and receive complimentary the monthly research reports. Simply subscribe and the team will set you up for both the research together. Getaccess here

Nifty: Will it crash again!

#Nifty has shown a strong reversal exactly from the zone I have been expecting. It is time to be alert again! Visit https://www.wavesstrategy.com and see yourself why we turned bearish yet again!

How to make 16% in just 16 days trading stocks?

In the current market when Nifty has been all over the places it is not easy to trade. You need to have a systematic method to gain 10% to 15% on a stock over short term.

Honeywell Automation recommended on 7^th November 2018 gave a return of more than 16% in just 16 days.

You can see the chart below where the stock was recommended and how it behaved so far:

Honeywell Automation – Daily chart  Anticipated on 7^th November 2018

Honeywell Automation – Happened so far

Following was published for this stock on 7^th November 2018:

Honeywell automation from the telecom automation space has been in a secular bull trend. When the entire telecom space is in struggle, this stock which is ancillary to this industry has still done exceptionally well.

As of now the stock is in its dream run and currently wave 4 of (3) is ongoing. Post completion of this we will see wave 5 of (3) which will be strong and move towards ……… can then be expected. 150 exponential moving average (black) is working exceptionally well and we can expect positive trend to continue as long as the same is protected.

In a nutshell, trend for Honeywell automation is positive and one can create long positions at current levels of 20300 …………….

The above method clearly shows how we can use Elliott wave, Neo wave theory combine it along with basic methods like Channels, RSI, Moving averages and ride the momentum or create stocks in portfolio for Multibagger returns. So how far this stock can go from here?

Now subscribe to the Momentum stocks research and see based on these systematic methods where can you invest from short term perspective and make 10% to 15% returns. You will get a clearly justification along with Buy price, Stop level, Sell Price and Partial profit levels. Always remember it is a systematic way of taking risks and a few might not go in favour but the key is to be profitable on a net basis over the period of time. 

Get access to the Momentum stocks research here and there have been good trading and investing opportunities as of now on individual stocks. Also learn yourself why the exact call is given by way of charts and methods. Get access NOW here!Subscribe today and get 10% additional discount.

MCX Crude: Bollinger Bands® for Intraday trading!

Crude has been in limelight after witnessing a fall from the highs of 5600 levels making a low near 3500 levels.

Technical indicators coupled with Elliott Wave technique worked amazingly well to capture the entire down leg. Below is the chart of MCX Crude showing how we were able to capture a move of almost 150 points.

MCX Crude Dec 60 min chart: (Anticipated as on 17^th December, 2018)       

                         

                                                                                   

MCX Crude Dec 60 min chart: (Happened as on 18^th December, 2018)         

                         

       

(Below is the gist of research taken from “The Financial Waves Commodity Update” published on 17^th Dec, 2018 )

Wave analysis:

As shown on hourly chart, post making a high in form of wave a prices are moving in a range with 3850 as resistance on upside and 3650 as support on downside. We are using Bollinger bands and it has been working amazingly well as prices have reversed from either side of the bands. Only break of the levels mentioned above will provide a clear direction on either side.

In short, trend for Crude is range bound. Break above 3850 can take the prices towards 3950 levels whereas break below 3650 can take the prices towards 3500 levels!!!

Happened:  MCX Crude seems to be under bears hold as prices witnessed a steep selling which we expected and mentioned in previous update. Prices gave a break below its lower Bollinger bands at 3650 and made a low near 3480 levels.

Following are the calls given on intraday basis to our existing Intraday clients:

17/11/2018 CRUDE FUT SELL BELOW 3664 SL 3699 TGT1 3649 TGT2 3611 - TARGET 2 ACHIEVED

13/11/2018 GOLD FUT SELL BELOW 31600 SL 31670 TGT1 31570 TGT2 31495- TARGET 2 ACHIEVED

To know what will be the next move of Crude subscribe to our daily commodity report. It also covers short term view on GOLD, SILVER and Copper, Registerhere

We provide Intraday / Positional calls on these commodities along with research reports using these techniques through Whatsapp, SMS. For more details, click here

#Nifty: Are we headed towards 11000? How to trade? 14 December 2018

I think the best of the up move is over and we can start seeing is a drifting behaviour.
You
can keep a close watch on 10850 – 10900 zone and a strong momentum
above this is required to extend the ongoing up move. Failure to do that
can result into a non – trending behaviour and eventually and range
bound movement.
I strongly believe we might see 200 points of range
movement probably in form of a Diametric pattern. Next few days are very
important as there is going to be some amazing trading opportunity
posts that.
You can see my latest webinar where I have explained the patterns above.
If
you are interested in momentum research report that will provide short
term opportunities with 8% to 10% stop and 12% to 15% targets and
clearly defined charts, patterns and calls simply – Register here

Why Nifty is positive despite BJP losing and Urjit Patel resignation?

BJP has been losing almost all the states in the ongoing assembly election and Urjit Patel immediately resignation only resulted into a knee jerk reaction on Equity markets. We are seeing a strong pullback from the lows and despite of all the pessimism and negativity Nifty is currently trading in positive territory!

Shocked! Now understand that if markets were driven by news or events it would have been much easier to make money. History shows that news or events only produces short term spikes or random movement and then the original trend resumes.

In recent history you can see that Demonetization and Trump victory, BREXIT events are classical example that were strongly bearish but market bounced back either on the same day or very next day to the original level from where the fall started. So, today’s movement is no surprise to us.

Also looking at the event and then taking the position is like driving looking at the rare view mirror. It is best to avoid doing that but rely on the patterns and methods that have scientific and systematic way of analysing the markets. We use Elliott wave patterns to understand and forecast the market movement. Now look at the below chart that shows Fibonacci retracement of 61.8% with Neo wave pattern.

Nifty 60 minutes chart: 

 The above shows a classical bounce back from the 61.8% retracement level. With completion of wave d at the lows and also wave e starting higher.

Now someone who does not know these techniques might not understand it completely but try to think how precisely 61.8% Fibonacci level worked irrespective of the news or event. So it is news that drives the market? I have my doubts!!!

In the morning research report we mentioned the following: In short, overall trend is negative but Nifty closing is going to be very crucial. Urjit Patel sudden resignation clubbed with state election outcome can result into chaotic movement but irrespective of the event if Nifty closes positive it will be a sign of short term low! 

It was clearly mentioned as the possibility before the markets opened. Majority would not have even thought about something like this is plausible that BJP losing across the states and Urjit Patel suddenly resigning but Nifty closing up by 60 points. We have been keeping this is as much probable scenario even before equity markets started trading in morning.

We are seeing some amazing movement on equities across stocks and indices. Today’s move was no surprise. You cannot miss this next big opportunity which is going to emerge very soon. Get access to Intraday / Positional advisory – calls along with daily research report – The Financial waves short term update and see yourself why we are not surprised by Nifty movement like majority! Act now. Here is the link

So, which stocks to keep accumulating in the ongoing correction in markets – Get access to the Multibagger research. Know more here

Is Nifty headed for a crash below 10000 or one push on upside is pending?

Nifty had a Big Gap down opening and prices sustained the Gap throughout the day. This keeps the short term trend on downside. However, one need to understand that there are 5 state Election outcome which will be due tomorrow. Any positive surprises might result into a sharp reversal. During such scenario one needs to stay cautious and leverage less.

Now look at the below chart of Nifty which was published in “The Financial waves monthly update” on 9^th November 2018. Look at the path shown on the chart:

Nifty daily chart– Anticipated on 9^th November 2018

Figure 4: Happened

In the previous monthly update we mentioned that “We are yet to see the right shoulder formation with neckline near 10000 mark. It is based on Time cycles and Neo wave assumption that we will see a right shoulder now under formation which will take prices towards 11000 mark or a little higher to create the necessary euphoria again. Trust me the last 600 points of up move on index did not produce much optimism but the next 200 or 300 points will result into widespread belief that the low is in place and up move is starting. This is the typical nature of market and traders who only trade based on gut feeling will be trapped on the long side near 11000 mark” BANG ON!

Nifty had moved precisely as expected in the month of November. We have been pretty accurate for identifying the up move and the widespread euphoria in the markets. Nifty moved higher towards the level of 10940 before reversing back on downside. When we are capturing a move of nearly 1000 points on Nifty from the lows one should not try to catch the last final breath and be prepared when it approaches the target levels.

Neo wave pattern: We completed wave (a) that truncated near the levels of 10440 and post that we are seeing wave (b) formation. The pattern currently ongoing within wave (b) is not clear and next few days of price action will clarify this. A faster retracement below …..…. followed by ……….. from where wave c of (b) started will suggest that a top near 10940 is in place and the downtrend is resuming whereas if we start seeing some halt here over next few days then there will be a possibility of retest of …….. This will suggest that wave (b) is either forming a ……….. triangle pattern or a …………… pattern. As we saw expansion in the first few legs there is possibility of contraction pattern over next few days or couple of weeks. However, volatility will be higher within the range and so one should trade with caution unless wave (b) completion is confirmed. Small trades can be taken during this scenario and once the bigger degree downtrend begins start following the trailing stop method to ride the fall. 

In a nutshell, …. this is not necessary and it is best to look for shorting opportunity as we approach near the resistance levels. However, next few days of price action is very crucial. In case of sharp decline below ……. the bigger degree correction will resume below 10,000. One should be prepared for increase in volatility with state election outcome due over next few days as markets are already in corrective phase which is normally associated with high volatility.

Get access to the monthly research report and see the path we are expecting over next few weeks. Predictability is high and next two days will clarify the Neo wave – Elliott wave counts to the core. Get ready for the next big trend to emerge and yes it is going to be fast. So what are the crucial levels for trade setup? Also subscribe for equity research report annually and get monthly research along with it. Get access here

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